The Senate is on the brink of a major political showdown as a contentious debate over credit card swipe fees threatens to derail the bipartisan cryptocurrency regulatory framework that has been in the works for months. Senate Majority Leader John Thune’s pledge to restore ‘regular order’ is being tested by a battle that could collapse the stablecoin bill, which would establish a regulatory framework for stablecoins.
After prolonged negotiations, the cryptocurrency legislation appears to have enough support to pass the Senate, but the issue of credit card swipe fees has become a significant stumbling block. The amendment proposed by Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) seeks to force payment networks like Visa, Mastercard, and American Express to compete on swipe fees, a move that has drawn criticism from major retailers and the financial sector.
Crypto supporters, who are on the verge of securing their largest legislative win, are now scrambling to prevent the credit card provision from derailing their efforts. The amendment is viewed as a deal-breaker by some lawmakers, with Sen. Thom Tillis (R-N.C.) warning that its inclusion could undermine the value of the stablecoin components in the bill. The outcome of this issue remains uncertain, with procedural votes expected this week as the Senate looks to finalize the legislation.
Thune has expressed hope that the legislation can be finalized soon, but the credit card provision remains the biggest obstacle. Marshall has filed his amendment as part of the stablecoin bill, but it is unclear whether he will force a vote on the measure. The situation is further complicated by the Senate’s procedural rules, which could allow for an open amendment process that could lead to further delays or compromise.